2020 Best Invention

What does it mean that my debts have been discharged?

2 minute read Upsolve is a nonprofit tool that helps you file bankruptcy for free. Think TurboTax for bankruptcy. Get free education, customer support, and community. Featured in Forbes 4x and funded by institutions like Harvard University so we'll never ask you for a credit card. Explore our free tool


In a Nutshell

A discharge order that tells your creditors they are forever prohibited from asking you to pay your pre-bankruptcy debts ever again.

Written by Attorney Andrea Wimmer
Updated October 2, 2021


Having your debts discharged means that the court entered a discharge order in your case. The discharge (or discharge order) is your main goal in filing for bankruptcy protection. It is an order from the court - entered pursuant to the provisions of the Bankruptcy Code - that tells your creditors they are forever prohibited from asking you to pay your pre-bankruptcy debts ever again. Whether you file under Chapter 7 and your discharge is entered approximately four months after your case is filed, or you filed under Chapter 13 and your discharge is entered after you complete your payment plan, getting your discharge is what protects you even after your bankruptcy case is closed. In other words, a discharged debt is a debt that the creditor can’t try to collect from you.

The court will automatically send a copy of the discharge order to all of the creditors on your mailing list. At the same time that happens, the court will send you a copy as well. Since this is what you’ve been working towards, it’s important to keep this document in a safe place where you can find it again in case you need it. You do not have to send the discharge to your creditors. By now, your creditors should have stopped contacting you long ago and the only reason you would ever need to send them a copy of your discharge is if they didn’t get the copy from the court, for whatever reason.

You will not receive a separate notice from each of your creditors that your debt has been discharged. We do recommend, however, that you get a copy of your credit report about a month after your discharge is entered, so you can make sure everyone is correctly reporting your discharge. If a pre-bankruptcy debt does not show up as discharged on your report, you should file a dispute with the credit reporting agency to correct this. At this point, it is not practical (nor effective) to contact your creditor about this as they will (or should) have a big flag in their system that they are legally prohibited from trying to collect from you. Therefore, even if you call them, they might not speak to you about your account at all, even if all you are trying to do is verify that the debt has been discharged.

The discharge does not list out each one of your creditors individually - it applies to them all across the board and is limited only by the non-dischargeability provisions in the Bankruptcy Code. This means that even creditors who cannot be discharged (such as student loans or some tax debts) will receive a copy of the discharge. For those creditors, the discharge tells them that the automatic stay has been terminated and they can resume collection activities from you.

If you have tax debts that are more than three years old, they may have been discharged. Since a lot of factors go into determining whether your tax debt was discharged, your best bet is to wait 30-60 days, then contact your local IRS office. By then, their system should have updated throughout and they should be able to tell you which of your tax debts, if any, have been discharged. If you had a tax lien filed against you for any of the discharged tax years, you should also ask them about releasing the lien at that time.

Upsolve User Experiences

1,737+ Members Online
bryant graham
Bryant Graham
★★★★ 7 hours ago
Upsolve was very helpful i highly recommend there service.
Read more Google reviews ⇾
Keith Vincent
Keith Vincent
★★★★★ 7 hours ago
Upsolve provides a invaluable service at no cost. The clerk of court told me all of my paperwork was in order. It was done by myself with the assistance of Upsolve staff. Great Service for the people of this country. Thank you Upsolve.
Read more Google reviews ⇾
Andrew Morales
Andrew Morales
★★★★★ 1 day ago
Exceptional Service and Support - A Lifeline During Bankruptcy I am delighted to share my heartfelt gratitude for Upsolve and the exceptional assistance they provided my wife and me during our bankruptcy filing. Their expertise, kindness, and user-friendly platform made an otherwise daunting process remarkably simple and accessible. From the moment we engaged with Upsolve, their team exhibited an unwavering commitment to helping us navigate the complexities of bankruptcy with ease. Their knowledge and professionalism were evident at every step, and they went above and beyond to ensure we felt supported and understood throughout the entire journey. Upsolve's user-friendly platform was a game-changer, simplifying the otherwise overwhelming paperwork involved in bankruptcy filings. Their intuitive interface guided us through each necessary form, reducing confusion and streamlining the process. Thanks to their comprehensive resources and guidance, we were able to complete the filing accurately and efficiently. What truly set Upsolve apart was their empathetic and caring approach. The Upsolve team was always available to address our questions and concerns promptly, providing clear and compassionate explanations that put our minds at ease. Their commitment to accessibility is commendable, particularly for individuals like us who couldn't afford the services of a lawyer. Upsolve made bankruptcy filing a viable option for those facing financial hardships, providing much-needed support to those who need it most. While we have just completed the filing process and await the final outcome, we are confident that Upsolve's expertise and meticulous assistance will yield positive results. However, regardless of the outcome, we are eternally grateful for their invaluable help. They have given us hope and a fresh start, empowering us to take control of our financial future. If you find yourself in a similar situation, I wholeheartedly recommend Upsolve. Their commitment to making the bankruptcy process more accessible, their exceptional support, and their user-friendly platform make them an unparalleled resource for anyone in need. Thank you, Upsolve, for being our guiding light during this challenging time.
Read more Google reviews ⇾

Conclusion

Getting your debts discharged is the point of your bankruptcy case (there may be others, but it’s definitely the main one). Getting the discharge is an automatic process assuming you complete all the necessary steps of the process and the court will notify your creditors as soon as it has been entered. It does not mean that your case has been closed and you continue to be obligated to assist the trustee in the administration of your case. If you don’t, the trustee can ask the court to revoke your discharge which would then allow all of your creditors to start coming after you again (making the entire bankruptcy case basically pointless). You should continue to monitor correspondence from your trustee and the court, and keep both updated if your mailing address changes to avoid any unnecessary hiccups.



Written By:

Attorney Andrea Wimmer

TwitterLinkedIn

Andrea practiced exclusively as a bankruptcy attorney in consumer Chapter 7 and Chapter 13 cases for more than 10 years before joining Upsolve, first as a contributing writer and editor and ultimately joining the team as Managing Editor. While in private practice, Andrea handled... read more about Attorney Andrea Wimmer

It's easy to get help

Choose one of the options below to get assistance with your bankruptcy:

Free Web App

Take our screener to see if Upsolve is right for you.

Take Screener
11,388 families have filed with Upsolve! ☆
or

Private Attorney

Get a free bankruptcy evaluation from an independent law firm.

Find Attorney

Learning Center

Research and understand your options with our articles and guides.

Go to Learning Center →

Already an Upsolve user?

Read Support Articles →

News

    + Show Articles
    Y-Combinator

    Upsolve is a 501(c)(3) nonprofit that started in 2016. Our mission is to help low-income families who cannot afford lawyers file bankruptcy for free, using an online web app. Our team includes lawyers, engineers, and judges. We have world-class funders that include the U.S. government, former Google CEO Eric Schmidt, and leading foundations. It's one of the greatest civil rights injustices of our time that low-income families can't access their basic rights when they can't afford to pay for help. Combining direct services and advocacy, we're fighting this injustice.

    To learn more, read why we started Upsolve in 2016, our reviews from past users, and our press coverage from places like the New York Times and Wall Street Journal.